Spreading the Joy Global: China Watch

http://www.thestreet.com/_yahoo/video/10722156/spreading-the-joy-global-china-watch.html?cm_ven=YAHOOV&cm_cat=FREE&cm_ite=NA&s=1#77445555001

A video from thestreet.tv; an analyst talking about why she likes Joy Global

Hasbro Q1 2010 Earnings Release

Hasbro announced better than expected profits for their first quarter of 2010 linked to a double digit sales increase in the girls' toys and overseas markets. Net revenue rose 8.2% to $672.4 million beating analyst estimates. Sales in all segments and locations rose, some of which was due to positive foreign exchange rates. CFO Deborah Thomas did say however that this favorable foreign exchange rate effect could be less later on this year. Without this movement in currency net revenue increased 5%. CEO Brian Goldner kept a positive outlook for higher revenues and EPS for 2010.

In an article on Reuters, BMO Capital Markets analyst Gerrick Johnson was quoted as saying "The toy industry as a whole is performing well... "Parents might not have more money than last year, but they have more certainty about their budget. Parents don't cut back on their kids when they can plan."

Hasbro's first-quarter net profit almost tripled to $58.9 million, close to 40 cents per share in comparison to a year ago. HAS reported a profit of 26 cents per share while analysts predicted earnings of 16 cents per share.

The company's board also authorized a stock repurchase worth $625 million.

Following this announcement HAS stock price increased 1.5% hitting $40.45 and peaked at $40.77 during the trading day so far. Mattel stock price dropped just .8%. If this surge in prices remains steady, a sound price point to buy in might not come around for the UASBIG Portfolio. But this increase in earnings is a positive direction for Hasbro moving into 2010 in terms of the value of the company. Going forward it will be especially important to monitor Hasbro in case an opportune price point hits and updating the model in anticipation of 2011 expectations of even higher growth.

-Roopa Bhopale

Reuters article
Call Transcript from Seeking Alpha

Goldman Sachs Takes Down Financial Sector

Goldman Sachs on Friday was named as defendant in a civil law suit on fraud allegations. To sum up the case Goldman Sachs and partnered with John Paulson and his hedge fund to design a portfolio to sell to investors while Paulson and his hedge fund shorted this exact same portfolio. Paulson and his hedge fund had no role in the marketing or selling of these CDO's so no wrong doing was done on their part.

What people forget to mention is that also on Friday the SEC released an independent examiners report that they completely dropped the ball and should have closed Lehman months before they collapsed. People believe the Goldman case was announced Friday to delfect attention from Lehman report.

The announcement of the case against Goldman Sachs brought down the entire financial sector with Goldman shares dropping over 10%, and Bank of America shares dropping 5% (a UASBIG holding).

http://online.wsj.com/article/SB10001424052702303491304575187920845670844.html?ru=yahoo&mod=yahoo_hs

Bank of America Q1

Bank of America Corp posted its first quarterly profit since summer 2009 as it generated outsized bond trading revenue and set aside less money to cover bad loans. Big trading profits show the Merrill Lynch acquisition is paying off and the bank's lower credit provision signals that borrower defaults may be stabilizing as the economy improves.

Chief Executive Brian Moynihan has reshuffled management and is expanding Merrill Lynch's commercial and investment banking business in a bid to keep boosting the bank's profits. Moynihan sounded optimistic about the bank's outlook on a conference call with analysts."The worst of the credit cycle is clearly behind us," he said.Five of the bank's six major business units were profitable during the quarter, with the exception being the home loans unit.

Earnings were driven by arguably Lewis's most controversial deal in his nearly decade-long run as CEO -- the Merrill Lynch purchase, which closed in early 2009. Bank of America's global banking and markets division generated $3.2 billion of profit in the quarter, the best results of the six major business units. Record sales and trading revenue drove that profit, particularly in fixed income, currencies and commodities. That investment banking division reported $5.8 billion in revenues during the quarter.

The acquisition of Merrill Lynch was the main driver of the groups decision to purchase Bank of America for UASBIG. The overall credit quality of the overall consumer is improving and has been said not only by BAC, but also by its biggest competitor JP Morgan. I have a lot of faith in new CEO Brian Moynihan, primarily because he realizes the their business has changed with the aquistion of Merrill and is looking to expand on that segement of business.

-Richie Civello

Apple - New iPhone OS Update

Apple will bring multitasking features to the iPhone in the next operating system update mid-year and will also be entering the advertising business by embedding ads within app store applications, taking a 40% cut of revenue.

http://blog.newsweek.com/blogs/techtonicshifts/archive/2010/04/08/apple-s-modus-operandi.aspx

Life Technologies business with SUNY Albany

Today I was finally able to speak to someone on campus about the molecular and academic research being done and whether or not UAlbany was purchasing products from Life Tech. I first spoke to James A. Large, senior assistant to the Chairpserson for Facilities and Fiscal Management for the Department of Biological Sciences. He knew that they did buy products from Life Tech but not specifically any monetary amounts. He referred me to Bernie O'Connor in the chem building. I spoke to Mr. O'Connor and he is the purchaser of all of the supplies that academic researchers need as well as faculty needs for classes.

What Mr. O'Connor told me was that a few times a year they would purchase supplies from Life Tech specifically Applied Biosystems. Each purchase was for very small materials, he showed me maybe half the size of his index finger that sold for over $1200 a pop, so this again paints the gross margins that Life Tech is able to achieve. One recent order was placed for $4200. These purchases he showed me were just in the last 6 months, and if you multiply this by the 90% of academic research facilities in the US that Life Technologies sells to you can understand the amount of money they are making, just alone from academic research customers in the US. He also told me that their websites were absolutely phenomenal, never had any problems with ordering products online and that they had overnight shipping. Furthermore, he mentioned that they basically had a monopoly on the forensics industry, because he really knew of no other company providing those forensic systems.

To conclude, I just want to reiterate that Life Technologies is a very profitable company and remains a very good investment. I maintain that a 12 month price target of $57.00 is a conservative one, and I will be adjusting the model for a potentially higher price target after 2010 Q1 earnings are released.

-------Michael Arias

Eldorado Gold up 7% today

Eldorado Gold (EGO) was up 7.01% in trading Wednesday to $13.59.

Gold spiked to over the $1,150 mark, sending mining shares higher across the board on a down day for the equity markets and energy commodities.

Days like this are normal for EGO and I maintain my price target of $16